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Julian Gibbs

London Pacific Assurance is the new insurance subsidiary of the Jersey-based financial services group London Pacific Group.

It is the biggest listed company incorporated in Jersey and is also listed on the London and New York stock exchanges. It is regulated by the Jersey Financial Services Commission.

It has recently launched a guaranteed return bond, paying 7.4 per cent a year over three or five years at the option of the investor.

As far as I am aware, this bond gives better returns than any other guaranteed investment for a non-taxpayer, better terms than guaranteed income bonds for a 10,000 investment for basic-rate taxpayers and slightly lower returns for bigger investments and for higher- rate taxpayers although all taxpayers have the advantage of receiving the income gross instead of net.

For those who are growth investors, the high-yield bond rolls up gross and at maturity can be rolled over into another bond at the then prevailing interest rates.

As well as being attractive to the private investor, the guaranteed return bond is also available to corporate and trustee investors.

While the bond can be cashed in early, thereare likely to be penal-ties calculated accord-ing to rates of interestat the time.

The bond is very attractive to non-taxpaying husbands or wives, overseas investors and anyone considering retiring abroad.

It is also attractive to basic-rate taxpayers who want a higher than average cashflow, especially as interest rates are likely to fall nextyear when 7.4 per cent a year may no longer be available. It is good to see a new entrant in this market offering a safety-first product.

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